Revista de Relaciones Internacionales, Estrategia y Seguridad ISSN: 1909-3063 [email protected] Universidad Militar Nueva Granada Colombia

Sjahril Sabaruddin, Sulthon; División de Estudios Internacionales Centro de Investigación y Docencia Económicas 62 YEARS OF - DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD Revista de Relaciones Internacionales, Estrategia y Seguridad, vol. 12, núm. 2, julio- diciembre, 2017, pp. 287-323 Universidad Militar Nueva Granada Bogotá, Colombia

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62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD*

Sulthon Sjahril Sabaruddin** & División de Estudios Internacionales Centro de Investigación y Docencia Económicas***

* This research was developed with the support of the Agencia Mexicana de Cooperación Internacional para el Desarrollo, Secretaría de Relaciones Exteriores (AMEXCID SRE) for the Special Program - Visiting Professor 2015 Scholarships. This paper represents the opinion of the author, and is the product of professional research. It is not meant to represent the position or opinion of the Ministry of Foreign Affairs for the Republic of Indonesia. Any errors are the fault of the author. ** Diplomatic Official (Charge d’Affaires), Embassy of the Republic of Indonesia in Sana’a. Doctorate in Economics, Universitas Indonesia. Dr. Sabaruddin actually works in the Center for Policy Analysis and Development on American and European Regions - Ministry of Foreign Affairs of the Republic of Indonesia in Jalan Taman Pejambon No. 6, . E-mail: [email protected]. The author thanks Jorge A. Schiavon Uriegas, Lorena Ruano Gómez, Revista de Relaciones Revista Mariana Magaldi de Sousa, Carlos Antonio Heredia Zubieta, and Federico Alejandro Cortés Cortés for their valuable comments in this paper and supporting the author for the visiting professor program at the Centro de Investigación y Docencia Económicas (CIDE). The author

12 (2), 287-323. DOI: http://dx.doi. also thanks Mr. Leonard Felix Hutabarat, the Director of the Center for Policy Analysis and Development on American and European Region, Ministry of Foreign Affairs of the Republic of Indonesia (Pusat P2K2 Amerop Kemlu RI) and H.E. Yusra Khan, Ambassador of the Republic of Indonesia accredited to Mexico, Belize, Salvador, Guatemala and Honduras for supporting him to participate in this visiting professor program. Finally, the author thanks Juan José Ramirez Bonilla (El Colegio

28 de enero de 2017 28 de enero de Mexico) and Omar Martínez Legorreta (El Colegio Mexiquense) for sharing their views on the Indonesia-Mexico diplomatic relations in the interview session. *** Carretera México-Toluca 3655 Col., Lomas de Santa Fe 01210, México, D . F. org/10.18359/ries.2301 Internacionales, Estrategia y Seguridad , 20 de septiembre de 2016 Recibido: 20 de septiembre de 2016 Evaluado: 27 de septiembre Aceptado: Referencia: Sampó, C. (2017). 62 years of Indonesia-Mexico diplomatic relations: some reflections and ways forward. Artículo de Investigación 288 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD

Abstract

The paper attempts to discuss the Indonesia-Mexico diplomatic relations over the last 62 years (1953-2015). The paper shows that during the Soekarno admi- nistration, Indonesia and Mexico enjoyed the peak momentum of their bilateral political relations. The bilateral relations deteriorated during the Soeharto regi- me, despite some re-invigoration to strengthen economic relations was visible in the later period. In the post-Soeharto regime, the bilateral relations have stren- gthened, particularly in the economic sphere. The paper points out that there is plenty space that both countries could seize to strengthen the bilateral relations. But to achieve this goal, both countries need to have strong political willing- ness, work hard, and address the inherent matters and issues in innovative and creative manners. In the economic sphere, both states need to find resourceful ways on how to evolve from being a competing partner to become an emerging collaborative partner. To support the Indonesian economic diplomacy programs, Indonesia should also need to strengthen the socio-cultural and political coope- ration. The paper holds that achieving a so-called ‘comprehensive partnership’ as agreed by both Head of State in the Joint Statement 2013 seems to be a visible goal to be achieved in the near future.

Keywords: Economic diplomacy, diplomatic relations, Indonesia, Mexico, com- prehensive partnership.

62 AÑOS DE RELACIONES DIPLOMÁTICAS ENTRE INDONESIA Y MÉXICO: ALGUNAS REFLEXIONES Y CAMINOS A SEGUIR

Resumen

El artículo discute las relaciones diplomáticas entre Indonesia y México durante los últimos 62 años (1953-2015). Muestra que durante la administración Soekar- no, Indonesia y México disfrutaron del punto más alto en sus relaciones políticas bilaterales. Éstas se deterioraron durante el régimen de Soeharto, a pesar de alguna revitalización para fortalecer las relaciones económicas que fue visible en su periodo tardío. En la etapa posterior al régimen Soeharto, las relaciones bila- terales se han fortalecido, sobre todo en la esfera económica. El artículo señala que hay mucho espacio el cual ambos países podrían aprovechar para fortalecer las relaciones bilaterales. Pero, para alcanzar esta meta, ambos países necesitan tener una fuerte disposición política, trabajar duro y afrontar los temas y pro- blemas inherentes de maneras innovadoras y creativas. En la esfera económi- ca, ambos estados necesitan encontrar maneras recursivas para evolucionar de ser socios competidores a convertirse en socios colaboradores emergentes. Para

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 289 apoyar los programas diplomáticos y económicos de Indonesia, ésta también necesita fortalecer la cooperación sociocultural y política. El artículo sostiene que alcanzar una llamada “cooperación plena”, como fue acordado por ambos jefes de estado en la Declaración Conjunta de 2013, parece ser una meta visible de lograr en el futuro cercano.

Palabras clave: diplomacia económica, relaciones diplomáticas, Indonesia, Mé- xico, cooperación plena.

62 ANOS DE RELAÇÕES DIPLOMÁTICAS ENTRE A INDONÉSIA E O MÉXICO: ALGUMAS REFLEXÕES E CAMINHOS A SEREM SEGUIDOS

Resumo

O artigo discute as relações diplomáticas entre a Indonésia e o México durante os últimos 62 anos (1953-2015). Mostra que durante a administração Soekarno, Indonésia e o México disfrutaram do ponto mais alto nas suas relações políticas bilaterais. As quais se deterioraram durante o regime de Soeharto apesar de al- guma revitalização para fortalecer as relações econômicas que foi visível no seu período tardio. Na etapa posterior ao régime Soeharto, as relaciones bilaterais se fortaleceram, sobre tudo na esfera econômica. O artigo aponta que existe muito espaço no qual ambos países poderiam aproveitar para fortalecer as re- lações bilaterais. Mas para alcançar esta meta os dois países necessitam ter uma forte disposição política, trabalhar fortemente e enfrentar os temas e problemas inerentes de forma inovadoras e criativas. Na esfera econômica, ambos estados necessitam encontrar maneiras recursivas para evolucionar de ser sócios com- petitivos a transformasse em sócios colaboradores emergentes. Para apoiar os programas diplomáticos e econômicos da Indonésia o mesmo também necessita fortalecer a cooperação sociocultural e política. O artigo afirma que para alcan- çar a chamada “cooperação plena”, como foi estipulado por ambos chefes de estado na Declaracao Conjunta de 2013, parece ser uma meta visível de conse- guir no futuro próximo.

Palavras-chave: diplomacia econômica, relações diplomáticas, Indonésia, Mé- xico, cooperação plena.

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 290 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD

Background back to the 18th century, when Spain ruled both the Philippines and Mexico Mexico is one of Indonesia’s old friends (Anjaiah, 2008). Certain places in In- in Latin America. It is the second oldest donesia, from Sulawesi to Flores, had Indonesian friend in the Latin Ameri- contacts with the Spanish colonial re- can region, just after Brazil. Formally, gime. Indonesia exported cinnamon the diplomatic relations between Indo- to Mexico; meanwhile, Mexico intro- nesia and Mexico started on 6th April duced vanilla to Indonesia. All of these 1953, after both states signed the Joint commodities were sent through Chi- Declaration on Opening Diplomatic nese ships sailing from the Philippines Relations (Ministry of Foreign Affairs of via Indonesia and , and finally the Republic of Indonesia. 2013). Pri- to Mexico. Further, in 1930, a Mexi- or to the diplomatic establishment in can citizen, Mr. Miguel Covarrubias, 1953, during the Presidency of Adolfo visited Indonesia for the first time and Ruiz Cortinez, in 1952, Dr. Josue de came back in 1933 supported by the Benito López which was the senior ad- Guggenheim Institute to conduct a re- visor at the Mexican Ministry of Trade search about (Library of Congress, had already came up with the idea to 2011). He lived in Bali during the open up a commercial relation and East Indies regime and establish diplomatic relations with In- spoke Melayu with Balinese accent. donesia (Pramudyo, 2004). However, it was in early 1953 that Dr. López fi- nally communicate the idea about the During his stay in Bali, he made manu- opening up diplomatic relation with scripts, cartoons, a film1, and pictures Mexico to the Indonesian official, Dr. about Bali geography, Balinese society, Mukarto Notowidigdo, who was the and life in Bali. He wrote a famous Indonesian ambassador in the U.S. at book in English titled “The Island of that time (Pramudyo, 2004). Before Bali” in 1937 and the second edition the diplomatic relations establishment of his book in 1938 became a best sell- or even before the Indonesian inde- er and was widely published around pendence in 1945, earlier contact of the world, making Bali a famous place. Indonesia-Mexico bilateral relations Another Mexican citizen, the former were noted. Vice-Minister of Agriculture and Head of the Instituto Cultural Mexico – In- First, Ambassador Melba Pria men- donesia (ICMI), Ing. Patiño Navarrette, tioned both countries contact dates also visited Indonesia in 1939 to con-

1 The film was re-made by José Benítez Muro. Miguel Covarrubias stay in Bali produced an important book on the Balinese culture, “The Island of Bali” and he also shot images in 16mm, but never made the movie. In the 1990s, José Benítez Muro saved the material and put the footage together to give it a structure, finally making the film. The excerpt of the Miguel Covarrubias documentary ‘La Isla de Bali’ filmed in the 1930s is available online at: https://www.youtube.com/watch?v=W9DScGxfabU.

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 291 duct a plants and fruits research, par- lands and to uphold the Indonesian ticularly their suitability for cultivation opening of the preamble constitution in Mexico (Pramudyo, 2004). The of 1945, the so-called Undang Undang seeds of palm oil, mango, rambutan, Dasar 1945 (Pramudyo, 2004). jackfruit, and other tropical fruits were brought and cultivated in Mexico. During the Soeharto regime, the bi- lateral relations deteriorated from be- In general, over the years, Indonesia- ing ‘very close friends’ to become just Mexico bilateral relations have been ‘friends’. During this period, Soeharto’s cordial despite certain ups and downs foreign policy priorities were to sup- among others due to the different port national economic development Head of State paradigms and program and enhancing people’s prosperity priorities, and the domestic conditions (Department of Foreign Affairs of the of their respective countries. During Republic of Indonesia, 1971). Thus, the first Indonesian President, Ir. Soek- in accordance to this national interest, arno regime, since the opening of the Mexico was not viewed as an impor- diplomatic relations, Indonesia had a tant partner. This was understandable clear stance and viewed Mexico as a as Mexico was a developing country, a strategic country to have as a partner, donor-recipient country, and the Mex- hub, and bridge in the Latin American ican-made products were uncompeti- region. Soekarno had very cordial rela- tive, for instance, when compared to tions with the Mexican President, Ad- the U.S made products. Nevertheless, olfo López Mateos and in fact, in this from the late 1980s to the mid-1990s, period both states enjoyed the peak of some attention was paid by the Indo- the political relations era in the bilat- nesian government as the Latin Ameri- eral diplomatic relations history. can region was viewed as a potential non-traditional market for Indonesian The closeness of Indonesian relations products and with a market portfolios with the Mexican government and diversification purpose (Sjahril, 2012). several other Latin American coun- On the other hand, Mexico started tries such as Argentina, Uruguay, and to view the Asian Pacific region as a Cuba was in fact a breakthrough of the dynamic one to which the country President Soekarno as part of his for- needed to engage with, particularly for eign policy agenda. Mr. Atmono Suryo, economic cooperation. which used to be assigned at the In- donesian embassy in Mexico in 1955, In the mid-1990s, due to disturbances stated that Indonesia-Mexico bilateral such the Tequila Crisis in 1994 and relations should be viewed as a break- the Asian Financial Crisis in 1997-98, through after the independence of the the bilateral relations slowed down as Republic of Indonesia. As an indepen- both states emphasized on recovering dent state, Indonesia wanted to be free their domestic economic and politi- from any interference of the Nether- cal matters. Starting the mid-2000s, as

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 292 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD the U.S. economy faced a prolonged tinents, due to conventional problems recession and the European region such as distant geoFigureal location, experienced economic crisis followed language barriers, lack of infrastruc- by a prolonged recession, this in fact tures, lack of awareness, the interests became a turning point for countries of local people from both countries, such as Indonesia and Mexico to act and still a relatively low people-to- and find new potential markets to people contact have ultimately caused support economic growth. Indone- the bilateral relations between Indone- sia, despite having a relatively good sia and Mexico to persistently remain economic performance, needed new below their potentials over the years. potential markets to boost exports to If both countries want to achieve and help support the national economic elevate their partnership into a next growth. Meanwhile Mexico, which stage, then both sides essentially need is highly dependent on the U.S. mar- to work hard and at the same time ket performance, was adversely af- should have a strong political willing- fected2 by the global economic crisis; ness to advance on such goals. thus, the country needed to diversify its economic relations by finding new This paper attempts to reflect and dis- potential markets to help strengthen cuss the dynamic of the Indonesia- economic competitiveness and boost Mexico bilateral relations over the last economic growth. 62 years (1953-2015). The discussion covers ups and downs of the Indone- Thus, due to this rationale, during this sia-Mexico diplomatic relations over period the bilateral relations enhanced, the years and the lessons that could be not only in economic relations but learned from the past reflections. The also in many other cooperation areas paper also discusses and explores ways that have risen over the years. In fact, forward to strengthen and elevate the in a joint statement issued in 2013, Indonesia-Mexico relations into a so- both countries agreed to establish a called comprehensive partnership as so-called comprehensive partnership, agreed by both head of states in a joint acknowledging the strategic value of statement 2013. For Indonesia, Mexi- bilateral relations between both coun- co is perceived as an important partner tries (Ministry of Foreign Affairs of the in Latin America as the country ranked Republic of Indonesia. 2013). How- the 14th largest economy in the world ever, to achieve such objectives, there with a total Gross Domestic Product are challenges and lingering classical (GDP) amounting to US$1.283 tril- matters that both states need to ad- lion with a total population of 125.4 dress. It is already a classical matter that million people in 2014 (World Bank, countries from these two different con- 2015). Further, both countries have re-

2 In 2009, Mexico posted a negative economic growth with -4.7 percent.

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 293 affirmed their commitment to closely 2015. The discussion splits into five cooperate on common concerns and stages: 1) President Soekarno Regime interests in international fora such as (1945-1967) - The Golden Momen- the United Nations (UN), the Forum tum of the Bilateral Political Relations; for East Asia-Latin America Coopera- 2) President Soeharto Regime - A Si- tion (FEALAC), the Asia Pacific Eco- lence Period in the Indonesia-Mexico nomic Cooperation (APEC), and the Diplomatic Relations, and Some Rein- World Trade Organization (WTO), and vigoration & Disturbances in the Later in groups such as Group 20 (G-20), Period (1967-1998); 3) The Indone- Mexico, Indonesia, South Korea, Tur- sian Transition Period - The Reform, key and Australia (MIKTA), and includ- the Economic Recovery, and the Take- ing Indonesia and the Association of off of the Bilateral Economic Relations Southeast Asian Nations (ASEAN) with (1998-2004); 4) President Yudhoyono the Pacific Alliance as well. Regime - The Global Economic Reces- sion and the Momentum Towards the Considering its economic potentialities Re-strengthening of Economic Rela- and potential common concerns and tions (2004-2014); and 5) The Jokowi interests that could closely cooperate in Presidency and the Implications and quite a diverse international fora, then Ways Forwards of the Indonesia-Mexi- the potential to elevate the partnership co Bilateral Relations (2014-now). into a new stage is somewhat a realis- tic goal that could be achieved in the future. Few scholarly research papers President Soekarno Regime have been done so far on Indonesia- (1945-1967) – The Golden Mexico relations. This paper offers a Momentum of the Bilateral study to enrich economics and interna- Political Relations tional relations studies particularly on Indonesia-Mexico relations literatures. During the first stage of the Indonesia- The study is also meant to provide some Mexico bilateral relations (1945-1967), policy-making recommendations, par- Indonesian first President Soekarno vi- ticularly the appropriate economic di- sited Mexico three times (1959, 1960, plomacy measures to strengthen and and 1961) as part of his official jour- elevate the Indonesia-Mexico relations ney to the Latin American region. and into a new higher stage. he did have a very close relationship with Mexican President, Adolfo Ló- pez Mateos. In return, López Mateos Indonesia-Mexico Diplomatic also paid an official visit to Indonesia Relations: a discussion in 1962. Soekarno and López Mateos close relations marked the golden mo- In this section, the paper discusses the mentum of the bilateral political rela- dynamics of Indonesia-Mexico diplo- tions. In Mexico, when people were matic relations for the period 1953- asked about Indonesia, many would

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 294 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD mention Soekarno, and he was well the Asian African Conference 1955 in known for his statement “Go to hell , Indonesia had an objective with your aids” to the U.S. government. to make breakthrough among others Strengthening diplomatic relations with by further opening diplomatic relations the Latin American counterparts was with the Latin American states3. This Soekarno’s initiative and it was in ac- was a major step as during this period cordance to the Indonesian foreign po- the period of the decolonization era licy agenda, the so-called “Politik Luar and independent struggle took place. Negeri Mercusuar” or “Lighthouse Fo- reign Policy” (Department of Foreign Indonesia had a clear stance that Affairs of the Republic of Indonesia, Mexico was a strategic country to 1971). Indonesian foreign policy main have as a partner, hub, and bridge focus during the Soekarno regime was in the Latin American region. Among the recognition of Indonesia as a sove- the Latin American states, Mexico reign and independent country and the was the most important partner for fight for anti-imperialism in all of its ma- Indonesia in the region. This could nifestations. During the Cold War era, be seen from the Indonesian Embas- Indonesia was not allied to any power sies Classification4 in which the Indo- blocs ( vs. Soviet Union), nesian embassy in Mexico City was but instead was one of the founding ranked I.B, well-above Indonesian countries to establish a Non-Aligned embassies in other Latin American Movement (NAM) back in 1961. countries, specifically, Buenos Aires, La Habana, and Rio de Janeiro which To show Indonesian foreign policy were all ranked I.C. In fact, during spirits against any forms of imperia- this period, the Indonesian embassy lism and colonialism, Indonesia held in Mexico City was comparable to the the Asian African Conference 1955 in Indonesian embassies based in Brus- Bandung, gathering many leaders from sels, , or Ottawa (Department Asian and African states, most of which of Foreign Affairs of the Republic of were newly independent states (Asian Indonesia, 1971). On 10th April 1961, African Conference Commemoration Indonesia had its first Indonesian am- 2015 Committee, 2015). Apart from bassador to Mexico, Teuku Ismael strengthening Indonesian relations Mohammad Thayeb which made with Asian and African countries, since now the Embassy of the Republic of

3 Indonesia did invite Mexico to become a member of the NAM; however, Mexico, which was the pioneer for third world countries, finally became an observer of NAM, despite supporting the goals of this movement known as Dasasila Bandung. In turn, Mexico also pioneered the North-South High Level Conference in Cancun. 4 During the Soekarno Regime, the Indonesian Embassy Classification was divided into three categories: I.A. (The biggest and most important post), I.B. (The mid-level post), and I.C. (The low priorities post).

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 295

Indonesia in Mexico City to become through the Indonesian Central Trading a “fully-fledged embassy”5. Company (CTC) and the Dr. Josue De Benito Company (Pramudyo, 2004). For In the economic sphere, formally the Indonesia, the opening of trade coope- bilateral trade relations started in 1962 ration was important as Indonesia could after signing the Indonesia-Mexico Trade perform commercial relations with the Agreement (1961) and a year later, with Latin American states without having to the Revised Protocol on the Trade Agre- pass/transit via the United States. This ement (1962). But during the Soekarno trade cooperation was in accordance to regime, the bilateral trade relation was the Indonesian “Lighthouse Foreign Po- limited. Indonesia had a strong and cor- licy” agenda and a manifestation of an dial political relation with Mexico, but independent and active foreign policy. this cordial relation was not followed The objectives were also to strengthen by the strengthening of the economic relations among developing nations (or relations. In the late 1950s, although South-South Cooperation). there was no official trade data record, Pramudyo (2004) described that during In the socio-cultural cooperation, In- those periods Indonesian main export donesia officially inaugurated two ele- commodities were mostly limited to na- mentary schools, the Escuela República tural rubber and pepper. In 1962, the de Indonesia in Tacuba, Mexico City total trade amounted US$1.76 million and the Indonesia-Mexico Cultural and all of this trade relation consisted Center (ICMI) which was first led by the only on the Indonesian export, as im- Mexican Vice-Minister of Agriculture, ports from Mexico were none. Ing. Patiño Navarrette in 1959. In re- turn, Mexico officially inaugurated the The first noted trade exchange was bac- ‘Sekolah Dasar Republik Mexico’ at Ke- ked in 1955, in which Indonesian dele- bayoran Baru, Jakarta (1962). Further, gations visited Mexico City and explored in 1967, the Embassy of the Republic of for trade visiting several Mexican com- Indonesia in Mexico City and the Centro panies, particularly textile and skin-ma- Estudio Oriental, Faculty of Philosophy de product companies. The visit resulted and Languages, Universidad Nacional in an agreement to open trade exchange Autonoma de Mexico (UNAM) signed between natural rubber from Indone- an educational cooperation in teaching sia and textile products from Mexico Indonesian language6. This showed

5 Meanwhile the first Mexican ambassador to Indonesia, Brigadier General Albarrán Lopez, was appointed in October 1962. 6 Mr. Nana Sutresna Sastradidjaja was the Head of the Cultural and Information Division at the Embassy of the Republic of Indonesia in Mexico City. Mr. Bannoedojo Pakoeningrat, local staff at the Indonesian embassy, was assigned to become the lndonesian language teacher. The UNAM students who attended the Bahasa Indonesia class reached to 23 students from different faculties. Nonetheless, it stopped operating in 1973 as more UNAM students preferred to learn Japanese language as it was deemed to be more useful/ beneficial as a result of stronger Mexico-Japan relations.

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 296 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD both countries had strong solidarities deteriorated. It was not only visible and political will to enhance the image from the extreme decline in trade vo- and the awareness about both states lume, but also in the Mexican foreign and also the strengthening in all areas policy towards Indonesia itself. Mexi- of cooperation. co was very precautious in engaging relations in all fields of cooperation. In 1964, Bank Indonesia opened a Despite the fact that Mexican foreign representative office led by Mr. Mul- policy was anti-imperialism (or anti- yoto Djojomartono and assisted by colonization), and a free and active Mr. Munarwi and Mrs. Emmy Tari- foreign policy (the Estrade Doctrine), ma. Further, a branch of Central Tra- in certain circumstances that stance ding Corporation (CTC) was opened did not show up7 (table 1). and led by Dr. Kho Liong Bing. But, due to the misunderstandings, these President Soeharto Regime representative offices were closed (1967-1998) – A Silence Period of within less than a year. Thus, since the Indonesia-Mexico Diplomatic then until 1966, the bilateral tra- Relations, and Some Reinvigoration de relations dramatically declined & Disturbances in the Later Period (the official trade volume was zero) due to the economic and political The Silence Period of the Indonesia- situation in Indonesia (Pramudyo, Mexico Diplomatic Relations (1967- 2004). And, only in 1967, both cou- 1988) ntries posted trade relations figures amounted US$134,803. During the During the earlier period of the Presi- Gustavo Díaz Ordaz administration, dent Soeharto regime (1967-1988), po- Indonesia-Mexico bilateral relations litically speaking, Soeharto did not have

Table 1. Trade Relations between Indonesia and Mexico for the Period 1962-1967 (In Million USD) Year Export Import Total Trade Trade Balance 1962 1.757724 0 1.757724 1.757724 1963 0 0 0 0 1964 0 0 0.421571 0 1965 0 0 0.089480 0 1966 0 0 0.050757 0 1967 0.138907 0.004104 0.143011 0.134803

Source: World Integrated Trade Solution (2015)

7 For instance, Mexican stance on Irian Jaya (East Papua) was in fact abstain, as Netherlands had a stronger bargaining power over Indonesia and was close friend to Mexico. Further, the G-30-S/PKI rebellion became widely known due to the news in Mexico, and the news press asked ‘where is Soekarno?’.

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 297 close relationship with the Mexican lea- pro U.S. or Western bloc, but it was an ders due to what Soekarno did in his Indonesian government that was fully presidency. The bilateral relations dete- supported by the people of Indonesia riorated from being ‘very close friends’ which did not want communism in In- to become merely ‘friends’. During this donesia (Pramudyo, 2004). This stance period, there was a clear difference in received a strong appreciation by the terms of the foreign policy of both sta- Mexican government and in accordan- tes, in which Indonesia was positioned ce to the Mexican Estrada Doctrine on as “right of center” and Mexico was “left non-intervention and auto-determina- of center” (Pramudyo, 2004). During tion policies. As a result, Mexico gave a the regime, Soeharto’s fore- clear stance and vote supporting Indo- ign policy priorities were to support the nesia on Irian Jaya issue in the United national economic development agen- Nations held in November 1969. da and enhancing people’s prosperity. There were three main diplomacy pro- In the economic realm, Mexico was grams: to obtain Official Development viewed by the Indonesian government Assistance (ODA); strengthening econo- as a developing country and a donor mic, trade, technical, information, and recipient country; thus, the Indonesian cultural cooperation at bilateral, regio- embassy in Mexico City was classified as nal, and multilateral levels; and to secu- D-3 in the Indonesian Embassies Clas- re and conduct the Act of Free Choice sification8. During the Soeharto regi- (PEPERA) in Irian Jaya (Department of me, in general the Latin American and Foreign Affairs of the Republic of Indo- African states were D-3 embassies as nesia, 1971). Taking into account these they were the developing, debtor, and main diplomacy programs (particularly capital importing nations, and could the economic programs), then, Mexico become competitors with Indonesia in was not viewed as an important part- order to obtain ODAs and capital from ner, as the country would not be able the developed countries such as United to support the Indonesian economic States, Japan, and the Western Euro- development agenda. pean countries, as well as from interna- tional organizations. Several embassies In the political realm, Mexico was ini- in Africa were closed due to financial tially cautious about Indonesia as they reasons and the shift on the Indonesian suspected that the new Indonesian foreign policy paradigm as a result of President, General Soeharto, was a the changing political regime from Pre- pro U.S. military leader (pro-Western sident Soekarno to President Soeharto block). Indonesia did clearly pointed (Department of Foreign Affairs of the out the stance that the country was not Republic of Indonesia, 1971).

8 During the Soeharto Regime, Indonesian Embassy Classification was divided into three categories: D-1. (The biggest and most important post), D-2. (The mid-level post), and D-3. (The low priorities post).

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This shift in foreign policy paradigm did send a trade officials mission led by considered the Latin American and the Minister of Trade, Elisco Mondoza African states as secondary priorities Berrueto and, among others, explored partners due to: first, these countries to export 900 Volkswagen jeep vehicles were categorized as indebted countries; (Safari) to Indonesia (Pramudyo, 2004). second, the Indonesian foreign policy re-orientation to make friends with the During this period, the main obsta- Northern Hemisphere states such as the cles were that bilateral trade relations United States, the Western European needed to go through third coun- nations, and Japan; third, the geoFigu- tries. For instance, Indonesia impor- real distance and the need to do trade ted Mexican cotton from Japan and via third countries, product similarities, the Mexican Volkswagens from West and low product competitiveness (in- Germany. Meanwhile, Mexico bought cluding Mexican-made products) made Indonesian natural rubbers via Amster- the Indonesian government reluctant dam, London, or New York (Pramud- to do business and, for instance, over yo, 2004). As a result, for the case of the years Indonesia-Mexico economic Indonesia, the Indonesian business relationship was more a rivalry than a groups were reluctant to buy Mexican complementary partnership. industrial products as it was expensive and it was more convenient and com- But despite a more formal political re- petitive to buy from the conventional lation and the lack of political will from trading partners such as Japan and the the Indonesian administration, the bila- United States. Since then, there were teral trade relation did show significant strong perceptions among business increase during this period. In 1968, groups from both countries according the bilateral trade volume was only to which, due to the long geoFigureal US$1.401,446 and in 1988 reached to distance, even a ‘direct trading’ would US$27.9 million (World Integrated Trade not be beneficial for both countries. Solution, 2015). This was due to efforts made by the Mexican side to find new Apart from trade cooperation, there potential markets including Indonesia to was also technical cooperation, and export the primary and manufacturing the first visible technological coopera- products for the purpose of reducing tra- tion was between PT. Krakatau Steel de dependence with the United States and HYLSA SA, a steel manufacturer in in the late 1970s. For instance, Mexico Monterrey, Mexico9. Other technical

9 PT. Krakatau sent 200 labors for training in HYLSA steel manufacturer in Puebla and Monterrery and HYLSA SA sent 85 employees to help develop the PT. Krakatau Steel project, in which the company bought patents and built 4 steel manufacturers in Cilegon using the vapor energy from HYLSA SA which started to operate in 1982. This successful technical cooperation project made Dr. Ing. Raúl Quintero Flores, Technical Drector HYLSA SA become an Honorary Consulate for the Republic of Indonesia in Monterrery in 1990.

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 299 cooperation initiatives were: the Mexi- media, and the Escuela de la Republi- can support for the Indonesian gene- ca de Indonesia. ICMI also opened a ral election in which Mexico supplied branch in Guadalajara and Ing. Jesus 3600 Volkswagen Safari jeep vehicles Gonzalez Gortazar, Honorary Consul in CKD form for assembling in Jakarta for the Philippines in Guadalajara, (1977); 7 Indonesian trainees were was chosen to be the Head of ICMI10. sent for training at Centro Internacio- Further, other initiatives made were nal de Mejoramiento de Maíz y Trigo back in 1973; the former Indonesian (CIMMYT) to learn to cultivate corn and ambassador to Mexico, Mr. Hidayat wheat, and processing methanol into Mukmin wrote several books and one combustion (1984-1985). of them was titled “kerikil-kerikil tajam di Amerika Latin” (the sharp pebble In the socio-cultural realm, as part of gravel in Latin America) which was the Indonesian diplomacy agenda, the sold in Indonesia to enhance aware- Indonesian government made efforts ness about Latin America. In the late to strengthen cultural cooperation 1970s, a sister city agreement (ciudad including strengthening the Instituto hermanas) was signed between Tux- Cultural México – Indonesia (ICMI), pan, Jalisco State and Ende in Flores strengthening relations with the press (Pramudyo, 2004).

Figure 1. Trade Relations between Indonesia and Mexico for the Period 1968-1988 (in Million USD) Source: World Integrated Trade Solution (2015).

10 ICMI in Mexico City was headed by Eva Samano de Lopez Mateos, the wife of ex-President Adolfo Lopez Mateos.

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There were also exchange visits of a the Mexican President Ernesto Zedi- number of government officials and llo Ponce during the AELM III within private sectors. For instance, in the late the APEC framework, Osaka, Japan. In 1970s, the Indonesian parliamentary November 1997, President Soeharto delegations led by vice-chair of the also stopped by in Cancun in his way Indonesian People’s Representative to Canada for the APEC meeting. Council, Mr. Mashuri, visited Mexico and, among others, went to Cancun For the Mexican side, in November and visited the Mexican Parliament, 1994 the Mexican President, Lic. Car- and both parties signed for inter-par- los Salinas de Gortari11 visited Indo- liamentary cooperation. Also, another nesia to attend the APEC meeting in visible solidarities support were the Bogor and in 1995 Mexico became a Indonesian assistance to support the member of APEC. This member ad- Mexican government in the 1985 mission helped to further strengthen Mexico City earthquake. the bilateral and regional relations. Since 1994, Mexico showed strong Indonesia-Mexico Diplomatic interest to engage more with Asian Relations: Some Reinvigoration and counterparts as it was viewed that the Disturbances (1989-1998) region had significant and dynamic economic growth. During the later period of the Soeharto administration (1989-1988), a stron- In the economic realm, entering the ger bilateral relations, particularly the late 1980s and after the Cold War en- economic ones, were visible in this ded, economic diplomacy for the pur- period. Both heads of state paid offi- pose of enhancing prosperity received cial visits. Soeharto paid an official visit high attention and became a priority to Mexico in 1991 as part of his jour- agenda for many countries around the ney for attending the High Level Con- world including Indonesia and Mexi- ference G-15 in Caracas, Venezuela co (Woolcock, 2011). The Indonesian (1991). Soeharto met the Mexican government started to pay attention President, Lic. Carlos Salinas de Gor- and viewed the Latin American region tari and discussed ways to strengthen as a potential market (non-traditional bilateral relations. Further, in October market) for exporting the Indonesian 1995, Soeharto visited Cancun du- products and market portofolios diver- ring Soeharto’s journey to Cartage- sification purpose. On the other hand, na, Colombia, to lead the Indonesian Mexico started to view the Asian Paci- delegations for the 11th Non-Aligned fic region as a dynamic region in which Movement High Level Conference. In the country needed to engage particu- November 1995, Soeharto also met larly for economic cooperation.

11 The elected President Ernesto Zedillo Ponce also visited Indonesia.

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For the trade relations, during the pe- clined from US$254 million (1998) to riod 1989-1998, despite some distur- US$203 million (1999). As a result of bances such as the Mexican Crisis in the Indonesian financial crisis, many of 1994 and the Indonesian financial cri- the activities including socio-cultural sis in 1997-98, both countries were still activities12 and the exchange of visits able to manage a relatively significant by the government officials and private trade volume increase from US$77.38 sectors declined. Further, in July 1998 billion (1989) to US$254.86 billion the ITPC office in Mexico City was also (1998). During this period, the num- closed down (Pramudyo, 2004). ber of government and business offi- cials’ visit increased and, to support The Indonesian Transition the bilateral trade relations, in Decem- Period - The Reform, the Economic ber 1992 the Indonesian Trade Promo- Recovery and the Take-off of the tion Center (ITPC) started to operate in Bilateral Economic Relations Mexico City. Besides, technical coope- (1998-2004) ration was also visible under the fra- mework of South-South cooperation. In the political sphere, Indonesian President visited Mexico in 2000 and In the late 1994, Peso currency was 2002. In April 2000, the Indonesian devaluated against US Dollars and President, Abdurrahman Wahid, visi- Mexico experienced the worst eco- ted Cancun for a work visit and met nomic crisis since 1987. This tequila the Mexican President Ernesto Zedillo crisis spread to many regions around Ponce de Leon. His visit was part of his the globe including Latin America, journey to the High Level Conference Asia, and Europe. The Mexican crisis on Non-Aligned Movement in La Ha- in 1994 did slightly slowdown the In- bana, Cuba. And in October 2002, donesia-Mexico trade relations, from President Megawati visited Los Cabos US$185 million (1994) to US$180 mi- to attend the APEC Summit. During llion (1995). In spite of it, in the subse- the sidelines, Megawati met the Mexi- quent years, the trade increased until can President, Vicente Fox Quesada. the 1997-98 Asian financial and eco- During the period 1998-1999, with a nomic crisis that among others struck political turmoil situation in Indonesia, Indonesia and significantly impacted people in Mexico were informed on the Indonesian economy, including the democracy process in Indonesia the Indonesia-Mexico economic rela- and the independence of Timor Leste. tions. The bilateral trade relations de- This was a challenging period for the

12 Regarding socio-cultural activities, despite a significant decline of activities, since 1998 there were Indonesian missionaries coming to Mexico for missionaries purposes. Also, in September 1997, a lecturer from Universitas Indonesia, Evi Yuliana Siregar, taught Bahasa Indonesia in the Center for Asian and African Studies, El Colegio de Mexico (El Colmex). As of November 2014, Mrs. Evi was also appointed as the Head of the Indonesian Diaspora in Mexico.

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Indonesian government to address and third biggest cement company in the re-clarified the Mexican views on the world, bought 25.53% of the PT. Se- Indonesian current political situation. men Gresik shares for US$290 million During this period, the first Bilateral (Pranasidhi & Silaen, 2006). In Decem- Consultation Forum (BCF) was held in ber 2003, there was also an agreement , Bali on 11th April 2003. The to import gas from the field located in BCF is an important forum to discuss Tangguh, Papua, with a deal valued in cooperation in all areas such as Politi- US$24 billion for 20 years of contract. cal and Economic cooperation. In the socio-cultural field, in May In the economic sphere, trade relations 2003, the Embassy of the Republic declined in the early transition period. of Indonesia in Mexico City establis- In 1998, the bilateral trade volume hed ‘Casa de la Cultura LOKA BUDA- reached US$254 million to US$203 YA’ to facilitate socio-cultural activities million in 1999. And in the following in Mexico (Pramudyo, 2004). There years, bilateral trade relations showed were also initiatives such as the esta- a slightly increasing trend with certain blishment of the Asociación Cultural fluctuations. In 2000, the bilateral tra- Indonesia-Mexico (21st April 2001) to de volume amounted US$273 million reunite former Mexican Darmasiswa and rose to US$309 million in 2004. scholarship holders in order to sup- Also, over the years the number of ex- port the Indonesian cultural activities change visits by both countries started and the Indonesian House supporting to increase and the number of Indone- trade cooperation. In another event, sian workers13 working in Mexico were in December 2004- Indonesia expe- also rising. For the business collabo- rienced a Tsunami in Aceh and the ration, the Mexican Ministry of Trade people of Mexico showed support to and Industry (SECOFI) recorded that as help Indonesia. The Mexican govern- of March 1996, there were 4 Mexican ment sent three big ships full of food, companies14 investing in Indonesia. medicine, relief materials, and doctors Further, in 1998, a Mexican cement to Indonesia to help tsunami victims in company, CEMEX15, which was the Aceh and Nias Island (Anjaiah, 2008).

13 There were many Indonesian workers not registered but who worked at South Korean and Taiwanese companies in the zona maquiladora close to the U.S. border. Further, there is an increasing number of Indonesian ship crews working at the ship cruise operating in the Caribbean route and fish catching ships owned by Taiwan. 14 Two operated in trade sector; one in steel and iron industry; and one in trading food, beverage, and tobacco. 15 But due to the reform and changing political situation in Indonesia, CEMEX faced difficulties as there was a demand by the local people for ‘spin off’ (separation) of the PT. Semen (a subsidiary from PT. Semen Gresik) from PT. Semen Gresik. As CEMEX failed the negotiation with the Indonesia Central Government, finally the case was brought up to international arbitration, International Centre for Settlement of Investment Disputes (ICSID) in Washington in December 2003.

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President Yudhoyono Regime - the bilateral relations and shared the The Global Economic Recession vision to work together in shaping the and the Momentum towards the global agenda by closely cooperating Re-strengthening of Economic in international fora, such as United Relations (2004-2014) Nations, FEALAC, APEC, G-20, and WTO to closely contribute to global During the Yudhoyono administration, causes of common concerns and inter- this period could be argued as the ests (Ministry of Foreign Affairs of the take-off of the bilateral economic re- Republic of Indonesia, 2013). lations. Indonesia has passed its tran- sition period, the Mexican economy Further, within the political realm, was also relatively stable, and the there are new emerging groups such event of the global economic crisis be- as MIKTA and the Pacific Alliance. came a turning point and an important MIKTA is an informal group formed in momentum to strengthen and elevate 2013 and consists of five major middle the Indonesia-Mexico bilateral rela- power countries: Mexico, Indonesia, tions. Economic diplomacy to enhance South Korea, Turkey, and Australia. prosperity and economic growth were Meanwhile, the Pacific Alliance is a priorities agenda. Thus, during this Latin American trade bloc formed in period the commercial relations were 2012 and consists of four member sta- further accelerated. tes, namely, Mexico, Chile, Peru, and Colombia. In 2015, Indonesia became In the political sphere, the bilateral re- an observer of the Pacific Alliance (Mi- lations were cordial and friendly. Pre- nistry of Foreign Affairs of the Republic sident Yudhoyono paid an official visit of Indonesia, 2015b). Other visible to Mexico in 2008, while the Mexican political cooperation initiative was the President, Enrique Peña Nieto, visited establishment of the Indonesia-Mexico Indonesia in 2013. In 2008, Yudhoyo- Friendship Group at the Parliamentary no paid an official visit to Mexico and level in 2011 by the Mexican Head of met the Mexican President, Felipe Cal- the Foreign Relations Committees to derón Hinojosa. The visit coincided strengthen inter-parliamentary coo- with the 55th anniversary of diplomatic peration between both countries. In relations. In 2012, both leaders also 2013, the Indonesian parliament visi- met during the sidelines of the APEC ted Mexico, which coincided with the Summit in Vladivostok, Russia. In 60th anniversary of diplomatic relations. 2013, Nieto visited Indonesia and met Yudhoyono on the sidelines of the APEC During this period, both countries con- Summit in Bali. During this 60th anni- ducted the Bilateral Consultation Fo- versary of diplomatic relations, both rum (BCF), 2nd BCF (10-12 May 2007, leaders in a joint statement agreed to Mexico City), 3rd BCF (9-10 May 2011, establish a comprehensive partnership Jakarta) and the 4th BCF (2nd August as recognition of the strategic value of 2011, Mexico City). This forum is cru-

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 304 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD cial to help strengthening the bilateral During this period, Indonesia-Mexico relations. One of the current priorities bilateral trade volume increased signi- of Indonesia-Mexico bilateral relations ficantly from US$309 million (2004) is to strengthen economic relations, to US$1.03 billion (2014). The bila- particularly trade and investment. To teral trade reached its peak in 2012 strengthen bilateral trade relations, in with US$1.21 billion. During the last 5 May 2009 Indonesia re-opened the years (2010-2014), Indonesian exports Indonesian Trade Promotion Center to Mexico showed a rising trend with (ITPC) in Mexico City. Further, both cou- an average of 2.65 percent but, howe- ntries have signed many agreements to ver, the Indonesian import from Mexi- strengthen economic, political-security, co has slowed down to 0.31 percent. and socio-cultural cooperation. In 2014, the Indonesian main exports to Mexico were: Vehicles other than In the economic sphere, the U.S. eco- railway or tramway rolling-stock, and nomic recession and the European fi- parts and accessories thereof (US$204 nancial and economic crisis followed million), Electrical machinery and by a prolonged recession caused the equipment and parts thereof (US$86 global economic crisis and this event million), Footwear, gaiters and the like; has led many countries around the parts of such articles (US$83 million), world to proactively find new market Animal or vegetable fats and oils and opportunities in order to boost econo- their cleavage products; prepared edi- mic growth as their traditional trading ble fats; animal or vegetable waxes partners (markets), the U.S. and Wes- (US$63 million), and Rubber and ar- tern European states, experienced pro- ticles thereof (US$62 million). Mean- longed economic recession. The global while Indonesian main imports from economic recession has in fact led Mexico are Electrical machinery and many developing countries, including equipment and parts thereof (US$41 Indonesia and Mexico, to intensively million), Nuclear reactors, boilers, ma- search for and explore new markets. chinery and mechanical appliances; Indonesia aims to strengthen trade re- parts thereof (US$39 million), and Iron lations with potential and untapped and steel (US$19 million) (figure 2). markets such as the Latin American re- gion, the Eastern European region, the Central Asian region, and the African The Jokowi Presidency and the region. For the Indonesia-Latin Ameri- Implication and Ways Forwards can trade relations, despite some tra- of the Indonesia-Mexico Bilateral de volume improvement, the overall Relations (2014-onwards) bilateral trade relations with 33 Latin American states were still small and Joko Widodo (Jokowi) became the In- only accounted for 2.735 percent of donesian President in October 2014. the total Indonesian trade with a total During the Jokowi administration, trade volume of US$8.4 billion (2014). the incumbent Indonesian President

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Figure 2. Trade Relations between Indonesia and Mexico for the Period 1989-2014 (In Million USD) Source: World Integrated Trade Solution (2015). emphasizes to strengthen economic large population (labor surplus), open diplomacy as its foreign policy priori- economy, a democratic country, and ties (Nurhayat, 2014). The Indonesian a fast-growing emerging country. With diplomats are expected to become the these potential assets and together salesman abroad and expected to be with a cordial and friendly relations, able to boost export and bring foreign then, the opportunity to elevate the direct investment as much as possible partnerships from just merely friend in order to support boosting the eco- into a comprehensive partnership (as nomic growth. Currently, Indonesia agreed by both Heads of State in the views Mexico as a potential and impor- Joint Statement 2013) seems to be fea- tant partner in Latin America. Mexico sible. But to achieve this visible target, is the second largest economy in Latin both countries need to work hard and America. In 2014, the country ranked address the inherent matters and issues 14th largest economy in the world with in an innovative and creative manner. a total Gross Domestic Product (GDP) amounted US$1.283 trillion with a to- Both countries may have learned from tal population of 125.4 million people their past economic crises experien- (World Bank, 2015). This very rough ces in the mid and late 1990s, and the glance of economic potentialities prolonged economic recession in the clearly shows a tremendous market in U.S. and Western European region - which Indonesia should further proac- their traditional markets- have pushed tively engage in. Mexico also views both countries to actively search for Indonesia as a strategic partner in the new potential markets. Nevertheless, Southeast Asian region with its eco- the recovery of the U.S. economy in nomic potentialities, among others its recent years may lead them to re-think

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 306 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD the situation and has become a cha- 1998-2013, the trade pattern of the llenge for both countries: the willing- bilateral relation was more as substi- ness and seriousness of both countries tutes rather than complementary part- to further deepen the bilateral econo- ners, but with some improvement. In mic relation. For instance, Prof. Juan 1998, the TCI was 36.5 points and in José Ramirez Bonilla (2015) explained 2013 was 40.79 points. Further, based that the current Mexican foreign policy on the TII data over the given period, priority is to strengthen the bilateral re- the TII has in fact declined from 22.31 lations with the United States, followed points in 1999 to only 19.61 points in by the and the Asian 2013 meaning that over the years the region. Mexico still relies significantly bilateral relation is getting less inten- on its economic relations with the U.S. se. This demonstrated that the efforts and with weak linkages to the Asia made by both sides to strengthening Pacific counterparts. In Asia, China is were not enough to intensify the bi- viewed as the most important com- lateral trade relations despite the fact mercial partner for Mexico, meanwhi- that the trade volume increased over le Japan and South Korea are viewed the last several years. as an important financial partner. Fur- ther, the Southeast Asian region is still It is already a classical matter that cou- considered as a secondary priority re- ntries from these two different regions gion within the Asian continent. due to conventional problems such long distance, language barriers, poor In 2004, Mexican-United States trade infrastructures, lack of interests by lo- relations amounted US$266.6 billion cal people from both regions, and low and 10 years later, the trade volume people-to-people contact have ulti- reached US$534.5 billion. Mexico’s mately caused the trade between In- main trading partner is the United donesia and Mexico to be below their States (80.3 percent of total exports potentialities over the years. Further, and 49 percent of imports). Meanwhi- for Indonesia, over the years Indone- le China, the second biggest trading sian foreign policy in Latin America is partner, accounted 1.5 percent of to- viewed more as an alternative market tal exports (behind Canada and Spain) that Indonesia needs to engage in or- and 16.6 percent of imports, far ahead der to diversify its exports and market of South Korea (3.4 percent), Japan portfolios. Although attempts have (4.4 percent), and Germany (3.4 per- been made to reinvigorate and enhan- cent) (HSBC, 2015). Further, looking ce the economic cooperation at the from trade indicators such as the Tra- regional and bilateral level within the de Intensity Index (TII) and the Trade recent periods, nonetheless, at least Complementarity Index (TCI), it can until 2014, Indonesian bilateral trade be seen that the bilateral trade rela- with its partners in the South Ameri- tion evidences some concerns despite can, Caribbean, Central American, some improvement. During the period and North American (except U.S. and

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Canada) regions shows a relatively low US$1.038 billion making the biggest trade volume. As an illustration, in trading volume among Central Ameri- 2014 Indonesia’s trading relations in can countries but however very lagged Latin America was only 2.735 percent behind the North American countries, of the total Indonesian trade and in the United States of America (US$24.7 fact this figure is the highest in the In- billion) and Canada (US$2.6 billion). donesia-Latin American trade history. Among the Latin American countries, Mexico ranked third just behind Bra- Within the Ministry of Foreign Affairs zil (US$4.05 billion) and Argentina of the Republic of Indonesia (Kemlu), (US$1.7 billion). The current Indone- Mexico is handled within the Direc- sia-Mexico bilateral trade relations are torate of North and Central Ame- still below their potential and more rican Affairs. In 2014, Indonesian efforts could be made to strengthen trading volume with Mexico amounted bilateral trade volume (figures 3 & 4).

TRADE COMPLEMENTARITY INDEX 46 IDN-MEX 1998-2013 44

42

40

38

36

34

32 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Figure 3. Trade Complementarity Index between Indonesia and Mexico for the Period 1998-2013 Source: World Integrated Trade Solution (2015).

Trade Intensity Index 30 IDN-MEX 1998-2013 25

20

15

10

5

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Figure 4. Trade Intensity Index between Indonesia and Mexico for the Period 1998-2013 Source: World Integrated Trade Solution (2015).

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Given those facts, both countries must mation Technology), pharmaceutical find ways to address the matters in order industry, as manufacturer of medium to achieve the ultimate objective of being technology machinery, and entertain- a comprehensive partner rather than ment. In the Maquiladora sector, U- merely a friend. For the economic rela- Flex India (Flex Americas S.A. de C.V) tionship which is the core of the current built state-of-the art manufacturing bilateral relations, both states need to facilities producing high quality packa- find creative ways on how to evolve from ging film in Tamaulipas State (Flex Film rival country (competitor) to become an Ltd, 2015). For Sino-Mexico economic emerging collaborative partnership. relations, historically, due to the simi- larities in the export structures of both Some lessons could be learned, for countries, the bilateral trade relations instance, from the Mexico-People’s have been characterized more as com- Republic of China (PRC) and Mexi- petition than complementarity, with co-India bilateral economic rela- the net balance of payments position tions. From the Mexican political heavily favoring PRC (Ellis, 2009). viewpoints, its relationship with the PRC (and to some extent also India) Over the years, for instance, the Chi- is important to demonstrate its po- nese low-end manufactured goods litical and economic independence like textiles and footwear have been from the United States. In fact, PRC strongly competing with the Mexican considers Mexico16 as one of four labor intensive textiles and footwear countries in Latin America being a and the Mexican products have been strategic partner along with Brazil, losing ground in this competition, not Venezuela, and Argentina (Xinhua only within the Mexican market but English, 2005) (table 2). also in the U.S. market. Further, PRC also exported significantly more so- From the economic viewpoint, Mexi- phisticated products to Mexico such can relations with the two countries as motorcycles, computers, applian- were able to evolve from being com- ces, and cars. Despite such difficulties, petitors to become partners. India- both countries have somewhat suc- Mexico economic relations have been cessfully managed to turn their eco- characterized as more complementary nomic relationships from being rivals over the years. India focuses its position into partnerships involving integrated, in the service sector (particularly Infor- global production chains, with a por-

16 In 2003, PRC upgraded its relationship with Mexico from “all-around cooperative partnership” (quanmian hezuo huoban) to “strategic partnership” reflecting the combination of the political and economic importance that Mexico represents for PRC. In the same year, for big countries such as South Korea, for instance, PRC augmented its status from “cooperative partnership” which was created in 1998 to “all-around cooperative partnership”. This implies that from the PRC’s view, Mexico is a more important partner than South Korea.

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 309 -8.23 -0.50 -3.67 Δ (%) 56.08 -43.72 -13.69 -41.79 -10.13 -17.43 -15.27 -81.36 2014/2013 Balance 6078.90 -2441.00 20302.40 13538.10 69628.80 33923.10 11686.40 663412.40 816129.10 8359796.70 -1105176.60 Total 8626.70 4164.80 28424.80 13848.70 35506.90 12245.80 148607.60 1038336.40 2615219.20 1289761.70 24700012.10 2014 155.30 791.90 279.70 Import 4061.20 1273.90 3302.90 39489.40 187462.00 236816.30 1860197.90 8170107.70 Export 861.90 7352.80 24363.60 13693.40 34715.00 11966.10 850874.40 109118.20 755021.30 1052945.40 16529904.40 -635.75 Balance 6088.40 -4824.32 22113.05 29824.63 -46492.63 171483.04 137971.97 315528.38 6659310.43 -1285123.90 Total 8955.50 2668.31 50501.80 23789.63 65711.59 41905.69 165364.22 1561964.70 1203067.96 2849818.52 24822953.41 2013 838.29 Import 1433.55 1652.03 6040.53 27663.06 13696.13 56102.11 623218.16 515792.46 2067471.21 9081821.49 World Integrated Trade Solution (WITS) and Ministry of Trade of the Republic Indonesia (2015). Solution (WITS) and Ministry of Trade Integrated Trade World Source: Export 7521.95 9609.48 1016.28 22838.74 22951.34 35865.16 938746.54 687275.50 151668.10 782347.31 15741131.92 Trade Relations between Indonesia and North and Central American Region Counterparts for the Period 2013-2014 (In Thousand USD) Relations between Indonesia and North Central American Region Counterparts for the Period Trade USA Belize Mexico Canada Panama Country Table 2. Table Honduras Nicaragua Costa Rica Guatemala El Salvador Total 6 7 8 9 5 4 2 1 3 N° 10

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 310 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD tion of the production operations lo- Taking into account the current In- cated in Mexico (Ellis, 2009). The PRC donesian and Mexican foreign policy has made significant investment in the orientations, the current constraints Maquiladora zone. The giant Chinese and opportunities to strengthen the computer manufacturer, Lenovo17, for economic relations, and the lessons instance, established a computer plant learned from Mexican economic re- in Monterrey with investment amou- lations with PRC and India, in the nting US$40 million (2009) and the next sub-section the study attempts to Chinese logistics company Hutchison provide some applied ways-forward Port Holdings have made significant policy recommendations for the In- investment in the Mexican port sector donesian government that hopefully located in Baja California and Vera- could be useful to elevate the current cruz (Hutchison Port Holdings Limited, Indonesia-Mexico diplomatic relations 2015). Further, the Chinese companies into a higher level. such as Huawei, Oppo, Foxconn and ZTE have planned to build commercial stores and factories in Mexico (Ruiz, Towards an Indonesia-Mexico 2014). These companies have beco- Comprehensive Partnership me increasingly important providers of Agreement: Shifting from a Rivalry components and services in the Mexi- Partnership to an Emerging can telecommunications sector. Collaborative Partnership.

But, above all these emerging colla- In accordance to the Kemlu Mis- borative relationship, much of their sion outline, Mexico is classified as a success depends on the U.S. market non-traditional market for Indonesian condition. For instance, the global re- export and an important partner in cession in 2008 have made the Chi- several bilateral, regional, and inter- nese companies such as the Chinese national fora. Specifically, the mission automaker Zhongxing, Geeley18, and of the Indonesian-Mexico diploma- FAW Group19 to withhold their plan- tic relations that need to be achieved ned investment to build auto plants are: to increase Trade, Tourism, and and performing some final-assembly Investment (TTI); to open Indonesian operations in the maquiladora zone, representatives; to increase the signing Mexico (Yan, 2008 & Alvolante, 2008). of bilateral agreements; and to increa-

17 Lenovo Website (2009), “Monterrey será centro tecnológico estratégico en México”, 18 February. Available online: http://www.lenovo.com/news/mx/es/2009/02/18_02_2009.html 18 In fact, Geeley finally established an auto plant in Uruguay in 2012 joint with Nordex, an Uruguayan company. The investment is targeted to penetrate the Brazilian market and the South American market as a whole. 19 Due to the global economic crisis, Grupo Salinas – FAW Group plan to build a joint assembly car plant has been called off (Gao, 2009).

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 311 se people-to-people contact (Marsudi, both countries have common interests 2010). Currently, Indonesia and Mexi- to share in the international fora such co have cordial relations, but transla- as the UN, G-20, FEALAC, MIKTA, APEC, ting these good political relations into and WTO. Therefore, the opportunity good economic relations is a challen- to elevate the bilateral relations into a ge. The paper attempts to provide po- next stage is quite realistic if both cou- licy recommendations in accordance ntries have strong political willingness, to the Kemlu Mission guideline. resolve the inherent problems that im- pede the current bilateral economic Both countries look at themselves as relations, and implement the work in emerging powers with great influen- a rightly guided manner. ce on their own sub-regions; both are secular and democratic countries, In the economic realm, first, Indonesia and with diverse and strong ties in should make use of the Mexican stra- their traditions. Both have somewhat tegic geoFigure position vis-a-vis the similar level of agricultural, industrial, United States. From the commercial and technological development, thus, perspective, the geoFigure proximi- making the trade relations to some ty of Mexico to the U.S. is a power- extent characterized as rivals rather ful competitive advantage for trade, than partners. Nowadays, the bilateral in terms of logistics costs and service talks are mainly oriented to strengthen responsiveness. These advantages are commercial relations, with both na- increased by the signing of the North tions looking to diversify their export American Free Trade Agreement (NAF- portfolios; to attract Foreign Direct In- TA) in 1994, thus, goods produced in vestment (FDI), and to enhance joint Mexico meeting certain criteria could technological developments in strate- enter the U.S. market with virtually no gic and highly complementary areas. fees, and this creates potential oppor- tunities for Indonesia, for instance, to Both sides acknowledge the significant locate certain companies for final-as- economic potentialities of both cou- sembly operations in Mexico. ntries, in which Mexico, on its side, clearly recognizes Indonesia as the lar- Apart from reaping benefits by a virtua- gest economy in the Southeast Asian lly tariff-free exported products to the region with huge commercial oppor- U.S. market, this maquiladora business tunity for Mexican companies, and as could also provide opportunities to a potential gateway to the Southeast acquire new technologies and improve Asian market. On the other hand, In- production processes through partner- donesia views Mexico as a potential ship with the Mexican firms. The Ma- economic partner in the Latin Ame- quiladora sector has not only attracted rican region and could become a ga- the U.S. investors by moving their pro- teway to penetrate the U.S. market and duction operations to Mexico due to the Central American region. Further, cheaper production cost, but also many

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 312 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD other countries such as the PRC, India, very keen to know and explore more South Korea, and European countries about Indonesia, just like the Indone- open their production operations in the sians that have interests to know and maquiladora zone. As a starting point, explore more about Mexico. Therefo- the Indonesian government could send re, the Indonesian government should an assessment team20 to assess the po- make use of this opportunity not only tential cost and benefits from investing through promoting Indonesia with its in the Maquiladora sector. socio-cultural programs but also simul- taneously marketing the internationa- Meanwhile, for the Mexican side, as lly recognized brands of Indonesian a reciprocity, the Mexican entrepre- products. neurs could explore to invest in the suggested sectors, The Masterplan Further, Indonesia must leverage a for Acceleration and Expansion of product’s Indonesian identity to appeal Indonesia’s Economic Development to the Mexican consumers’ growing in- (MP3EI). The MP3EI is an investment terest in foreign goods. In a Business guidance book mainly investing in in- Dialogue, Ambassador Yusra (Ministry frastructures and strategic sectors to of Foreign Affairs of the Republic of ultimately support Indonesian com- Indonesia, 2015a) asserted that qua- petitiveness. The investment would lity and uniqueness are the keys to also be expected to bring ‘know-how’ penetrate the Mexican market, two knowledge and technology. things that are owned by Indonesia. Indonesia has many unique products Second, Indonesia should strengthen of high quality that can potentially its marketing program and market be very well received in Mexico. The intelligence. The Indonesian govern- author identified three potential busi- ment has not effectively identified or nesses to promote Indonesian identity: leveraged Indonesia’s competitive ad- the culinary business, the creative and vantages and the targeted types of pro- the entertainment industry. In the cu- ducts that Mexicans wish to purchase. linary industry, the Indonesian gover- Indonesia should promote and sell nment should creatively find ways to the Indonesian brands to an expan- bring Indonesian business people and ding and increasingly affluent Mexican to find the Mexican entrepreneurs (or middle class that is developing a taste business partners) to open Indonesian for a broad variety of foreign goods. restaurants21 and foodstores in Mexi- The Mexican people are open and co. The restaurants sell the Indonesian

20 Also, the assessment team coud also attempt to identify the potential industries and companies that Indonesian entrepreneurs could fit in the Maquiladora sector. This assessment is important, knowing the fact that the Indonesian entrepreneurs are risk-adverse, and concern about risks of making investment abroad. 21 So far, there is only one Indonesian restaurant in Mexico City.

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 313 food, while the Indonesian foodsto- usual’ to a more ‘creative and innova- res sell among others Indonesian spi- tive tourist and business promotion’, ces and processed foods in Mexico. and one way to achieve this is to op- To support the culinary business, the timally use the available creative and Indonesian government needs to ne- entertainment resources. gotiate for tariff dismantlement and ensure all Indonesian food ingredients, In the textile and footwear industries, recipes, spices, and including proces- both countries could also potentially sed foods to be able to smoothly enter be complementary rather than rivals the Mexican market. This trade nego- as long as both states focus on brands, tiation should be done in a reciprocity product uniqueness, and quality. As basis, as the Mexican restaurants22 are discussed above, theoretically and his- also starting to expand their culinary torically, Indonesia-Mexico trade re- businesses in Indonesia. lations are more of substitutes rather than of complementarity, such as the Meanwhile, in the creative and en- exchange of textiles and footwear. tertainment industry, the Indonesian The case may be true if only taking government should approach the into consideration the cost of produc- Mexican television to explore for fea- tion and price of the products, hol- turing Indonesian film and sinetron ding other factors constant. However, (soap operas), joint creative videoga- if the trade focuses on brand image, mes, music, and cartoon (for instance, product uniqueness, and quality, then featuring the Mariachi-Dangdut music bilateral trade relations could still be and the Mariachi- cartoon). dynamic and even enhanced. For ins- Promoting Indonesia via the creative tance, Indonesia produces shoes from and entertainment industry should be fish skin (precisely skin of snapper and more effective and able to touch all le- tilapia) and this shoe uniquely is wa- vel of societies in Mexico. This creative terproof with a smooth texture, almost and entertainment promotion activi- like snake skin. The more exposed to ties not only help promote awareness water, this shoe gets stronger, because and the positive image about Indo- basically, the fish lives in water (Minis- nesia, but also simultaneously could try of Foreign Affairs of the Republic of help to promote and attract Mexican Indonesia, 2015a). Meanwhile Mexico tourists to visit Indonesia. The Indone- could export its traditional formal and sian government mindset should shift casual guayabera23 shirts with its appea- from ‘tourism & business promotion as ling Mexican product identity and uni-

22 Several Mexican restaurants can be found in Indonesia, such as Amigos Bar & Cantina, Hacienda Bar & Grill, Loco Mama, Chili’s Grill & Bar, and PuertoBello Express (Qraved Journal, 2015). 23 Guayabera is a traditional Latin American garment. Mexico, the Dominican Republic, Puerto Rico, and Cuba (where it is the official dress garment as of 2010) all recognize the guayabera as a form of “national dress” and their political leaders often wear them at public events (Centeno, 2012)

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 314 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD queness, as it suits in hot weather such are open and interested to explore a as in Indonesia with its tropical weather. broad variety of foreign products, this buyer group is still characterized as Third, to smoothen the Indonesian ‘price sensitive’. Meanwhile, for the business activities in Mexico, the In- business group where most of which donesian business people needs to are Small Medium Enterprises (SMEs) a work with local Mexican partners to faster and cheaper transportation link build sales and distribution networks is essentially needed. Over the years, in Mexico. This applies for Indonesian both states are concerned with the vast investors who want to open produc- geoFigure distance and the assumed tion facilities in the Maquiladora zone high transportation cost which ultima- which crucially need Mexican partners tely hindered commercial relations. for its sales and distribution networks. Therefore, given those facts, a direct Further, to facilitate business coope- flight and shipping route should be ur- ration and people-to-people contact, gently needed to address those matters. Indonesia and Mexico should open a The direct transportation link ultima- direct transportation link in the futu- tely reduces transportation cost, thus, re. A codeshare agreement between making both countries’ commodities Indonesia and Aeromexico cheaper and helping to facilitate busi- in 2013 was an excellent step to be- ness-to-business contact (and people- gin with, but it is not enough. For the to-people interaction as a whole). Sino-Mexican relations, a direct Ae- romexico flight between Tijuana and For the business perspective, Shanghai was opened in April 2008 given the economic potentialities and (Dibble, 2010). These direct transpor- the huge number of population in both tation links have facilitated the flows of countries, then a direct flight should people between the two states. be viable and potentially profitable for the commercial airlines24. Connectivity Indonesia and Mexico have huge po- between Southeast Asian and the Latin pulation, both are emerging countries American region is becoming increa- and with an increasing number of singly important given the rapid growth middle-income groups, thus, making in both markets. So far, the Southeast both states potential for strengthe- Asian – Latin American routes are fulfi- ning commercial relations. This boo- lled by the Gulf and European carriers ming number of middle class groups such as Emirates, Air France, KLM, Eti- are characterized with ‘price and cost had, and Qatar Airways (CAPA Center sensitive’ groups. For instance, despi- for , 2013). The Southeast Asian te the Mexican middle-income class and Latin American carriers could offer

24 So far, Airlines is currently the only Southeast Asian carrier serving the Latin American region. Singapore Airlines operates a direct flight to Sao Paulo via Barcelona.

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 315 quicker and cheaper flights by opening ges in Mexico. Universidad Nacional a direct flight. This could be done uni- Autónoma de México (UNAM) argua- laterally by the carriers such as bly was the first Latin American uni- Singapore Airlines or by building close versity to establish Centro de Estudios partnerships with airlines counterparts China-México (Cechimex) dedicated such as the Garuda-Aeromexico codes- to China studies (Ellis, 2009). From the hare agreement25. Sino-Mexican relations experiences, Indonesia could also establish a similar Further, as suggested by Pramudyo Center, a Center for Indonesia-Mexico (2004) both countries need to esta- Studies (Cindomex). blish a roadmap to build the maritime cooperation, not only for the transpor- The Cindomex should become the cen- tation and tourism sectors, but also to ter of excellence to learn about Indone- make use of its potentialities, for ins- sia-Mexico studies. Given the available tance, for sea-lanes communications resources, one potential location would and aqua-cultures. Pramudyo stated be at the El Colegio de México26 (El Col- that in this century, the maritime sector mex). El Colmex alone would not be is an important resource for both states effectively able to establish Cindomex and could be used by the people as a and further, making this Center viable source of food and medicines. in the long-run. Some lesson learned from the past such as the teaching of To support the Indonesian economic di- MoU between plomacy program in Mexico, the socio- the Indonesian Embassy in Mexico cultural programs should be strengthen City and the UNAM only lasted 6 years particularly to promote awareness and (1967-1973), and the ICMI, which was a positive image of Indonesia. In the inaugurated in 1959, stopped opera- socio-cultural sphere, some lessons ting in 1984. Therefore, the efforts to learned could be shared from the PRC establish Cindomex need to be sup- socio-cultural cooperation with Mexi- ported by the Indonesian government co. There is a number of universities and the relevant Indonesian and Mexi- and centers teaching Mandarin langua- can stakeholders. A Memorandum of

25 The Garuda-Aeromexico codeshare agreement is the first Southeast Asian and Latin American codeshare partner. 26 El Colmex has the minimum required resources: first, the higher institution has a Center for Asian and African Studies called Centro de Estudios de Asia y África (CEAA) with at least two competent lecturers and experts, namely, Mrs. Evi Siregar, who is a permanent Indonesian language lecturer at CEAA and whom since November 2014, has assumed the Head of the Indonesian Diaspora based in Mexico; and Prof. Juan José Ramírez Bonilla, a professor and researcher with expertise in the Southeast Asian region. Further, El Colmex is also one of the best think tanks in Mexico and the Latin American region. The 2014 Global Go To Think Tank Index Report by the University of Pennsylvania revealed that El Colmex ranked third in Mexico, behind Consejo Mexicano de Asuntos Internacionales (COMEXI), and Centro de Investigacion y Docencia Economicas (CIDE).

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Understanding (MoU) on Academic become a ‘brain hub’ for the Indone- and Socio-cultural Cooperation bet- sian people. They have powerful ‘bra- ween Cindomex and the Indonesian in power’ with potential innovators, Embassy in Mexico City (KBRI Mexico entrepreneurs, pioneers, educators, City) and Center for Policy Analysis and and workers, with lots of knowledge, Development on American and Euro- ideas, capital, and networks. Thus, the pean Regions (Pusat P2K2 Amerop), Mi- Indonesian diaspora is an important nistry of Foreign Affairs of the Republic asset to help boost greater economic of Indonesia could be a good starting and social links between Indonesia point. The Strategic KBRI Mexico City and Mexico. Despite the fact that In- and Pusat P2K2 Amerop – El Colmex donesian diaspora is relatively limited Partnership could become the embryo in Mexico, it is nonetheless a valuable and a locomotive through facilitating asset and partner that Cindomex ne- second-track people-to-people con- eds to collaborate with. For instance, tact, hence helping to achieve a more their expertise could be used for a bu- dynamic, progressive, and mutually siness and economic forum (such as cordial ties between both countries and doing business in Indonesia and Mexi- ultimately to help to raise the Indone- co through sharing experiences), and sia-Mexico diplomatic relations into a cultural activities such as teaching In- Comprehensive Partnership. donesian language.

Further, Kemlu should also use the past Still in the socio-cultural realm, the and existing assets and networks inclu- Indonesian government could make ding: Cenderawasih School, a school initiatives to build the President owned in Jakarta by Kemlu; Escuela Soekarno Statue in Mexico City. In the de la Republica de Indonesia in Mexi- past, Soekarno was an important figure co; and re-activate the ICMI that is no and quite well-known in Mexico. This longer in operation, and to invite the request is important as the Soekarno descendants of the former prominent statue would symbolize the cordial re- figures such as the child or grandchild lations between Indonesia and Mexico of Adolfo Lopez Mateos López and in the past. The Mexican government Miguel Covarrubias to support the did twice requested the Indonesian Cindomex. Indonesian government government to build the Soekarno should also make use of the Indone- statue during the Soeharto administra- sian diaspora in Mexico to support tion, but the Indonesian government the Cindomex program. Indonesian neglected the request27 (Pramudyo, diaspora could no longer be viewed 2004). Now, during the Jokowi ad- as a ‘brain drain’ but instead should ministration, it is opportune for both

27 In 1963, the Mexican government requested the Indonesian government to build the Soekarno statue at the corner of the street between Paseo de la Reforma and Arquimedes, Polanco, Mexico City. But due

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 317 states to build a symbolic President ficant level of economic power. These Soekarno statue in Mexico City. Fur- are important foundation and a miles- ther, Jokowi is a member of the PDIP tone in the mutual endeavor towards Party which is led by Megawati Soekar- an active, dynamic, and stronger coo- noputri, a former Indonesian President peration. There are many international and the daughter of Soekarno. for a, among others the United Na- tions, APEC, MIKTA, FEALAC, Indonesia- Last but not least, Indonesia could also Pacific Alliance, WTO, and G-20 from re-strengthen its sport cooperation which both could share common in- sharing best practices in low profile terests. The world is changing rapidly, cooperation such as natural disaster and new regional and global issues and management and human trafficking challenges have emerged. The world issues. For sport cooperation, back in needs to foster renewed and innova- 1964, a former prominent Indonesia tive partnerships to provide pragmatic, badminton player, Mr. Tan Joe Hok be- creative, and constructive solutions to came badminton coach at Deportivo address the challenges. Chapultepec, Mexico City (Pramudyo, 2004). The Mexican people do love Indonesia and Mexico could work sports; thus, it opens a big opportunity together and can play an active and to promote Indonesian sports such as constructive role in the international badminton, (Indonesian agenda and exert greater influence to martial arts), and sepak takraw by sen- address the regional and global cha- ding coaches to Mexico. llenges and strengthening the global governance in major international In the political realm, both countries fora. Despite both coming from di- could build a value-added partner- fferent cultures and regions, the sta- ship by establishing more dynamic, tes share core values and similarities. progressive, and mutually beneficial Strengthening the political relations relations through working closely on could support the elevation of their common interests in the regional and relations into a so-called Comprehen- international fora. Currently, both sta- sive Partnership. In an interview, Prof. tes have cordial relations and both are Juan José Ramirez Bonilla sugges- democratic and emerging economies ted the Indonesian government to that benefit from open economies also bring the Pacific Alliance members with robust growth rates and a signi- to become observers for Regional

Cont. note 27 to the limited available funds, thus, in this space the Korean Pagoda was built. In the early 1980s, the Mexican government requested again to build the Soekarno statue in the Paseo de la Reforma, and due to no response from the Indonesian government, finally, in the space the statue of the Yugoslavian Non- Aligment Movement leader, Joseph Broz Tito, was built. It is also believed that the Mexican government request was inopportune, as Soeharto in fact considered Soekarno as his rival.

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Comprehensive Economic Partner- this national interest, Mexico was ship (RCEP) and the Mexican gover- viewed not a priority partner. At least nment should make full use of the this was clearly seen in his earlier pe- Pacific Alliance with its Asian-orienta- riod of administration, despite some tion agenda. Further, with a very clear invigoration to strengthen economic agenda, Mexico could also attempt to relations was visible in the later pe- become an integral player in the Asia riod starting in the late 1980s until the Pacific region, for instance, by parti- mid1990s. Post Soeharto regime, the cipating in the political and security bilateral relations strengthened, parti- dialogue with ASEAN. The current cularly after the Indonesian transition Mexican president expects Mexico to period, and these bilateral relations, be able to act as a country with an in- particularly within the economic creasing role in the world as a middle sphere, have accelerated, when the power state. But to achieve this ob- U.S. recession and the global econo- jective, for instance, in the Asia Paci- mic crisis emerged. fic and ASEAN region, Mexico should Both countries have exchanged official come up with a very clear agen- visits at the highest level over the years. da and needs to have strong political The paper pointed out that there is willingness complemented with stron- plenty space that both countries could ger efforts. take advantage of to increase the co- llaboration between the governments, strengthen economic ties, and promo- Conclusion te connection among people. But to achieve this mission, both countries Over the years, the bilateral relations need to have strong political willing- between both countries have been ness, work hard, and address the inhe- generally positive, good, and cordial. rent matters and issues in an innovative For Indonesia, Mexico is the second and creative manner. There are linge- oldest Latin American partner after ring issues that need to be tackled out, Brazil in which the diplomatic relation including the assumed conventional was established in April 1953. During perceptions of long geoFigureal distan- the Soekarno administration, Indo- ce which leads to high transportation nesia and Mexico enjoyed the peak costs, similar economic and export momentum of the political relations. structures leading the trade patterns But during the Soeharto regime, the to be perceived more as rivals than relations deteriorated from used to be as complementary partners, language a ‘very close friend’ to become sim- barriers, lack of infrastructures, and ply a ‘friend’. Soeharto’s foreign poli- low people-to-people contact; these cy priorities were to support national have ultimately caused the bilateral economic development and enhan- relations to be below their potentiali- cing people’s prosperity. Thus, from ties over the years. Taking into accou-

62 YEARS OF INDONESIA-MEXICO DIPLOMATIC RELATIONS: SOME REFLECTIONS AND WAYS FORWARD REVISTA - Bogotá (Colombia) Vol. 12 N.° 2 - Julio-diciembre 319 nt the constraints and opportunities to ty, Mexico should invest in the MP3EI strengthen the bilateral relations, the sectors. Second, Indonesia should current Indonesian and Mexican fo- strengthen its marketing program and reign policy orientations, and the les- market intelligence. Indonesia should sons learned from the Sino and Indian promote and sell the Indonesian relations with Mexico, several policy brands to an expanding and increasin- recommendations were formulated in gly affluent Mexican middle class that is this paper. developing a taste for a broad variety of foreign goods. Further, Indonesia must For the economic relationship which leverage a product’s Indonesian identi- is the core of the current bilateral re- ty to appeal to the Mexican consumers’ lations, both states need to find crea- growing interest in foreign goods. Qua- tive ways on how to evolve from rival lity and uniqueness are the keys to pe- countries (competitors) to become netrate the Mexican market, two things an emerging collaborative partners- that are owned by Indonesia. hip. Despite historically being the bi- lateral economic relationship more a The paper suggested three potential rivalry, with strong political will and businesses to promote Indonesian implementing the appropriate eco- identity: the culinary business, the nomic diplomacy measures, the In- creative and the entertainment indus- donesia-Mexico bilateral economic try. Further, in the textile and footwear relationship could evolve from being industries, both countries could also competitors to be emerging collabo- potentially be complementary rather rative partners, ultimately achieving a than rivals as long as both states focus so-called ‘comprehensive partnership’ on brands, product uniqueness, and as agreed by both Heads of State in quality. Third, to smoothen the Indo- the Joint Statement 2013. nesian business activities in Mexico, the Indonesian business people need Several policy recommendations to to work with local Mexican partners strengthen the bilateral economic re- to build sales and distribution net- lations are, among others: Indonesia works in Mexico. Further, to facilitate should make use of the Mexican stra- business cooperation and people-to- tegic geoFigure position vis-a-vis the people contact, Indonesia and Mexi- United States through investing in the co should open a direct transportation Maquiladora sector which provides op- link in the future. portunities to reap virtually tariff-free exported products to the U.S. market Acknowledging both countries have and also opportunities to benefit from a booming number of middle class lower production costs, acquire new groups but characterized as ‘price and technologies, and improve production cost sensitive’ groups, thus, a faster and processes through partnership with cheaper transportation link is essentia- the Mexican firms. And as a reciproci- lly needed. The direct transportation

Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas 320 REVISTA DE RELACIONES INTERNACIONALES, ESTRATEGIA Y SEGURIDAD link ultimately reduces transportation Finally, in the political realm, both cost, thus, making both countries’ countries could build a value-added commodities cheaper and help to fa- partnership by establishing more dy- cilitate business-to-business contact, namic, progressive, and mutually and people-to-people interaction as a beneficial relations through working whole. Further, both countries need to closely on common interests in the re- establish a roadmap to build the ma- gional and international fora. The in- ritime cooperation, not only for the ternational fora among others are the transportation and tourism sectors, but United Nations, APEC, MIKTA, FEA- also to make use of its potentialities LAC, Indonesia-Pacific Alliance, WTO, for instance, for sea-lanes communica- and G-20. Both sides acknowled- tions and aqua-cultures. ge the potentialities that both states could benefit from strengthening the To support the Indonesian econo- bilateral relations. Currently, both are mic diplomacy program in Mexico, secular and democratic countries with the socio-cultural programs should open and fast-growing economies be strengthened, particularly in order and complemented with a cordial to promote awareness and a positive and friendly relations; then, to achie- image about Indonesia. One sugges- ve more dynamic, progressive, and ted approach is to establish a center of mutually cordial ties between the two excellence to learn about Indonesia- states, and ultimately to elevate the Mexico studies, a so called Center for diplomatic relations into Comprehen- Indonesia-Mexico Studies (Cindomex). sive Partnership seems to be a visible Given the available resources, one po- goal to be achieved. tential location would be at the El Col- mex. But, El Colmex alone would not be effectively able to make this Center References viable in the long-run and a strong sup- port from the Indonesian government Alvolante (2008). Geely no Contacta and the relevant Indonesian and Mexi- aún a México para Instalar Plan- can stakeholders is crucially needed. ta”, Alvolante Website, 17th Ja- To further strengthen the diplomatic relations, a symbolic President Soekar- nuary. Available from: http://www. no statue should be built in Mexico alvolante.info/nacionales/geely-no- City, one which was requested by the contacta-aun-a-mexico-para-insta- Mexican government but refused du- lar-planta/ ring the Soeharto regime. Other poten- Anjaiah, V. (2008). Mexico, Indone- tial socio-cultural cooperation includes sia are still good friends after 55 sport cooperation sharing best practi- years: Envoy. The Jakarta Post. ces in low profile cooperation such as September 15. Retrieve from natural disaster management and hu- http://www.thejakartapost.com/ man trafficking issues. news/2008/09/15/mexico-indo-

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Sulthon Sjahril Sabaruddin & División de Estudios Internacionales - Centro de Investigación y Docencia Económicas